COVID-19 resources

Many companies continue to face uncertainty about their prospects as a result of the on-going impact of the COVID-19 pandemic which continues to present a number of reporting challenges.  Although the FRC has highlighted that reporting in the face of the pandemic has not declined, it is still vital that companies continue to provide timely and high-quality reporting which reflects the ongoing uncertainties they face and their response to those uncertainties.

For many companies, their focus will have moved from the urgency of short-term survival to the development of longer-term resilience in the wake of COVID-19.  ESMA in its Common Enforcement Priorities, calls for companies to carefully assess the longer-term impacts of COVID-19 on their financial performance, position and cash flows.  It reiterates key messages from its previous Common Enforcement Priorities and highlights that it will continue to focus on how companies have considered the effects of COVID-19 in their reporting in particular on going concern assumptions, significant judgements, estimation uncertainty, presentation of financial statements and impairment of assets.  ESMA also reminds companies of its expectations with regards to disclosure in areas such as supplier finance arrangements and government assistance, the recognition of deferred tax assets, non-financial reporting and presentation of Alternative Performance Measures (APMs) in a COVID-19 environment.  

Like ESMA, in its upcoming monitoring of annual reports in 2021/22 the FRC will continue to focus on how companies are disclosing the financial reporting impacts of COVID-19.  In particular it will focus on the disclosure of judgements and estimation uncertainties arising from the continuing effects of the COVID-19 pandemic, particularly regarding matters such as going concern and liquidity.

In its Annual Review of Corporate Reporting it reminds companies of a number of key messages from its COVID-19 thematic review that 2021 reporters should continue to have regard to this reporting season.  Previous messages contained within other guidance such as the FRC’s Company Guidance COVID-19 and FRC Lab reports will also be relevant in highlighting FRC and investor expectations for reporting in the current uncertain environment.

This page includes our resources related to COVID-19.  It includes links to:

Related resources

Accounting considerations related to COVID-19 — Events after the reporting period

20 Apr, 2020

This video discusses the effect of COVID-19 on accounting after the reporting period. Since the 31st of December 2019, the events around COVID-19 have developed rapidly. In a global marketplace that is currently extremely volatile and in which major developments are occurring daily, it may be challenging for an entity to determine if an event after the end of the reporting period affects the recognition and measurement of assets and liabilities in the financial statements. When new information is obtained after the end of the reporting period, entities need to carefully assess if that information reveals a condition that existed before the end of the reporting period.

FRC issues Q&A on company filing, AGMS and other general meetings during COVID-19

17 Apr, 2020

The Financial Reporting Council (FRC) has issued a set of answers to commonly asked questions on the challenges companies may experience in complying with statutory obligations to hold meetings and to file documentation on the Companies Register during the COVID-19 crisis.

IASB holds meeting dedicated to COVID-19 issues

17 Apr, 2020

In advance of its regular meeting next week, the IASB held a supplementary IASB meeting today to consider COVID-19-related matters: the Board's timelines in view of the COVID-19 pandemic and accounting for COVID-19-related rent concessions.

ESMA expands Q&A document on the implementation of its APM guidance

17 Apr, 2020

In June 2015, the European Securities and Markets Authority (ESMA) published its final Guidelines on Alternative Performance Measures (APMs) for listed issuers that became effective in July 2016. Since then, ESMA has published several questions and answers on the guidelines to promote common supervisory approaches and practices in the implementation of them. A new question has now been added to the document on the use of APMs in the context of COVID-19.

DPOC discusses shortened comment periods for exposure drafts the IASB might decide to publish

16 Apr, 2020

The Due Process Oversight Committee (DPOC) of the IFRS Foundation held a conference call today to discuss shortened comment letter periods for two exposure drafts the IASB might decide tomorrow to publish in the context of the COVID-19 pandemic.

Agenda and pre-meeting summaries available for the April 2020 IASB supplementary meeting

14 Apr, 2020

The IASB is holding a supplementary IASB meeting to consider COVID-19-related matters on Friday 17 April 2020.

IASB publishes COVID-19 guidance on IFRS 16, will discuss COVID-19 implications in supplementary meeting

11 Apr, 2020

The International Accounting Standards Board (IASB) has published a document responding to questions regarding the application of IFRS 16 'Leases' during the period of enhanced economic uncertainty arising from the COVID-19 pandemic. In a supplementary meeting, the IASB will discuss the matter further and will also consider effective dates, consultations periods and publication dates in general.

Deloitte launches new webcast series on accounting considerations related to COVID-19

10 Apr, 2020

The Coronavirus Disease 2019 (COVID-19) pandemic is affecting economic and financial markets; virtually all industries are facing challenges associated with the economic conditions resulting from efforts to address it. We have set up a series of webcasts that discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic.

Accounting considerations related to COVID-19 — Judgements and estimates

10 Apr, 2020

This video discusses the effect of COVID-19 on accounting judgements and estimates. There is a high degree of uncertainty about the ultimate trajectory and the path and time needed for a return to a “steady state.” Entities will need to do their best to make reasonable estimates, prepare comprehensive documentation supporting the basis for such estimates and provide robust disclosure of the significant judgements exercised, the key assumptions used and, potentially, their sensitivity to change.

IPSASB publishes COVID-19 guidance

07 Apr, 2020

The International Public Sector Accounting Standards Board (IPSASB) has published 'COVID-19: Relevant IPSASB Accounting Guidance'. The questions and answers publication was issued by the staff of the IPSASB to provide insight into the financial reporting issues associated with COVID-19 government responses.

IOSCO statement on the application of accounting standards during the COVID-19 outbreak

04 Apr, 2020

The International Organization of Securities Commissions (IOSCO) has released a statement on consistent application and enforcement of high-quality accounting standards which are of critical importance to the proper functioning of the capital markets — especially in times of uncertainty.

Need to know — Expected credit loss accounting considerations related to Coronavirus Disease 2019

01 Apr, 2020

This publication discusses certain key IFRS accounting considerations related to the accounting for expected credit losses (ECL) that may result from the COVID-19 pandemic. The focus of this publication is for lenders and banks though much of it will be applicable to measurement of ECL in industries other than financial services.

Charities SORP Committee publishes guidance on Covid-19

30 Mar, 2020

The Charities Statement of Recommended Practice (SORP) Committee has published guidance on the implications of COVID-19 control measures and charity financial reporting.

CARES Act would provide optional temporary relief from CECL accounting

30 Mar, 2020

On 27 March 2020, US President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides relief from certain accounting and financial reporting requirements under U.S. GAAP. However, until actions are taken by the SEC or the FASB, the provisions of the CARES Act are not amendments to US GAAP.

IFRS Foundation issues statement on its work during the COVID-19 pandemic

27 Mar, 2020

The IFRS Foundation has issued a statement, ‘The coronavirus and the Foundation’s work,’ which acknowledges that this is a difficult time for stakeholders and provides information on what work they are doing to support their stakeholders.

EFRAG requests the IASB extend consultation period

27 Mar, 2020

The EFRAG have sent a letter to the IASB requesting an extension to the public consultation phase of recent or soon-to-be issued publications due to the affects of the coronavirus disease pandemic. In addition, the EFRAG suggests the amendment to IFRS 9 (IBOR Phase 2) should be published quickly after the publication of the exposure draft in April 2020 in order to avoid any potential complications.

IASB updates work plan in view of COVID-19 developments

27 Mar, 2020

The IASB has postponed to May 2020 the publication of several narrow-scope amendments to IFRS Standards originally planned for March and April 2020. This consolidation of publications is intended to facilitate more efficient post-publication procedures by the stakeholders. The work plan has been updated accordingly.

IASB publishes statement on IFRS 9 and COVID-19

27 Mar, 2020

The International Accounting Standards Board (IASB) has published a document responding to questions regarding the application of IFRS 9 'Financial Instruments' during the period of enhanced economic uncertainty arising from the COVID-19 pandemic.

New UK Accounting Plus resource page

27 Mar, 2020

We have set up an UK Accounting Plus resource page on accounting considerations related to COVID-19. The page includes news items and resources in connection with COVID-19 developments that highlight some of the key accounting and disclosure issues to be considered by entities that may arise as a result of COVID-19.

FRC, FCA and PRA issue Covid-19 guidance for companies and auditors

26 Mar, 2020

The Financial Conduct Authority (FCA), Financial Reporting Council (FRC) and Prudential Regulation Authority (PRA) have published a joint statement relating to the impact of Covid-19 on financial reporting.

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